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Base Services Charge

California’s electric rates are changing.

New California State legislation, Assembly Bill 205, mandates the California Public Utilities Commission (CPUC) to change the structure of electric bills for investor-owned utility customers.

As a result, the CPUC requires Liberty to adopt a Base Services Charge (BSC) rate structure where residential customers pay a monthly fixed charge based on their income beginning in 2026.

 

What does this mean for Liberty customers?

The BSC is not an additional charge, and is not an increase to rates.

The purpose of the BSC is to shift a portion of the costs that don’t change with a customer’s demand – such as wildfire mitigation – to a fixed service charge, which results in a more equitable allocation of fixed costs across all customers. This shift will reduce the volumetric rate that customers pay for their electricity usage. The shift from volumetric rates to the monthly fixed charge will result in little to no impact to an average customer’s bill.

With the reduced volumetric rates, the new BSC rate structure aims to make it more affordable for customers to transition to clean, all-electric vehicles and homes.

Customers who qualify for the CARE or CARE Plus programs will have a lower monthly BSC in addition to a reduced volumetric rate, resulting in a lower bill.

 

How does this change benefit Liberty customers?

When system maintenance, wildfire mitigation, reliability upgrades, and regulated programs are all charged to customers through volumetric rates, high-usage households end up paying a disproportionate share of the physical infrastructure costs, while low-usage homes may not contribute proportionally to the upkeep of the system they rely on for grid connectivity.

The shift from volumetric rates to a fixed charge will create a more equitable allocation of fixed costs across all customers.

How much is the new Base Services Charge?

Residential customers: $31.70

CARE customers: $10.00

CARE Plus customers: $5.00

When will Liberty’s new Base Services Charge be in effect?

Liberty plans to implement the new BSC in September 2026.

How can I learn more about the CARE/CARE Plus programs?

Customers who qualify for the CARE or CARE Plus programs are encouraged to apply now in order to qualify for the reduced BSC; otherwise, they will be charged the standard fixed rate of $31.70.

Please click the button below to visit Liberty’s CARE page and view income limitations and instructions for applying.

CARE Program

Customers who are already enrolled in the CARE program will automatically receive the lower fixed charge on their bills when the Base Services Charge takes effect in September 2026. Customers who fall under the CARE Plus income guidelines will receive an even further reduced fixed charge on their bills.

 

How will this impact my bill?

Click each dropdown below to view a sample bill impact for an average residential customer.


Frequently asked questions


  • The Base Services Charge is a monthly fixed charge for residential customers that helps recover fixed costs associated with providing electric service to your home, including wildfire mitigation, customer service, billing, and meter reading. Shifting these costs to a fixed charge will reduce the volumetric rate per kilowatt-hour that customers pay for their electricity usage.

    • Residential customers: $31.70
    • CARE customers: $10.00
    • CARE Plus customers: $5.00
  • The California Public Utilities Commission (CPUC) directed all investor-owned electric utilities to change the structure of residential electric bills pursuant to Assembly Bill 205.

    The goal is to move certain fixed costs, such as wildfire insurance, out of electricity usage rates and instead have these costs collected via a monthly fixed service charge while reducing the amount customers pay per kilowatt-hour of electricity.

    Using a fixed charge to recover certain fixed costs creates a more consistent and equitable distribution of costs amongst customers while better aligning electricity prices with actual energy consumption.

    Recovering certain fixed costs through a standard monthly charge helps ensure customers pay a more equitable share of electric grid costs while making electricity bills more reflective of the electricity they use.

  • No. The BSC is not an additional charge, and is not an increase in the amount of revenue Liberty collects from customers. Instead, certain costs that were previously recovered through electricity usage rates will now be displayed separately on customer bills as a fixed monthly charge.

  • Liberty plans to implement the BSC in September 2026.

  • It depends on how much electricity you use. When the BSC is implemented, Liberty's electricity usage rates will decrease. Customers who use more electricity may see little change or even savings, while customers who use less electricity may experience a different bill impact.

    The overall rate structure was designed to minimize bill impacts for the average customer.

  • The BSC includes fixed costs required to operate and maintain the electric system which do not change with customers’ electricity usage. Some of these costs include:

    • Customer access to the electric grid
    • Wildfire mitigation activities
    • Meters and service equipment
    • Billing and customer care

  • Lower electricity usage rates may make it more affordable for customers to adopt electric technologies such as electric vehicles, heat pumps, electric water heaters, and other electric appliances.

    By reducing the per-kWh price of electricity, the rate structure is intended to support California's clean energy goals.

  • Customers who meet income eligibility requirements may qualify for our CARE or CARE Plus programs and receive a reduced BSC.

    Customers are encouraged to apply now for the CARE/CARE Plus program so they can receive the appropriate discount as soon as the BSC is implemented.

  • No. Customers currently enrolled in CARE will automatically receive the reduced BSC of $10 when the program takes effect.

    However, if existing CARE customers qualify for CARE Plus based on their income but have previously qualified for CARE categorically without providing income information, they will need to submit a new application with income information in order to qualify for the CARE Plus program’s reduced BSC charge of $5.

    If you believe you qualify for CARE Plus but aren’t sure if you need to submit a new application, please contact Customer Service at 1-800-782-2506.

  • Customers with solar will pay the BSC because they remain connected to the electric grid and rely on utility infrastructure and services. Solar customers continue to rely on grid infrastructure, customer service, metering, billing, wildfire mitigation programs, and other services that are available whenever electricity is needed from the grid. The BSC helps recover those system access costs.

    Solar customers will also benefit from lower electricity usage rates when they purchase electricity from the grid.

  • No. The BSC changes how certain costs are collected through rates, but it does not increase Liberty’s authorized revenue.

Base Services Charge